The collapse of Silicon Valley Bank has vindicated the Australian Prudential Regulation Authority’s tougher rules and refusal to give into bank lobbying to loosen capital and liquidity requirements, experts say.
American regional lenders including Silicon Valley Bank helped convince the Trump administration to relax regulations for medium and small banks, which contributed to the downfall of tech and crypto-focused US lenders SVB, Signature Bank and Silvergate Bank.
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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
